Deep spending cuts not on agenda: SA Treasurer

Treasurer Jack Snelling says he does not intend making deep spending cuts

ABC News

Treasurer Jack Snelling says he does not intend making deep spending cuts in next month's South Australian budget.

But Mr Snelling says South Australia is facing a substantial cut in GST revenue when the federal budget is unveiled on Tuesday night.

In SA, he says the most severe savings that were needed were achieved in last year's state budget.

"It's not my intention to go back over and cut any more deeply than we already have," he said.

"I am fortunate in that the difficult decisions made by Treasurer [Kevin] Foley in last year's budget did give the budget the position it needs to be in to absorb revenue shocks, so I am in a fortunate position in that way."

But he will not rule out delaying projects or pushing back promised tax cuts to save money.

Opposition Leader Isobel Redmond still thinks Mr Snelling has been working to create excuses for a tough budget.

"That's the formula that this Government uses, paint a worse picture as they did last year the with the release of the Sustainable Budget Commission report a couple of days before the budget. That makes the bad news look less bad if you see it against awful news a day or two before," she said.

Earlier, Mr Snelling said South Australia was facing a much bigger-than-expected cut to its GST revenue from the federal budget.

Mr Snelling said the figure was substantially more than the $170 million reduction over four years which had been forecast in the mid-year budget review in December.

But he would not confirm the cut will be as high as $600 million over four years.

"There's very little capacity, if there is indeed any capacity, for any new spending," he said of his coming state budget.

"Those savings measures that were put in place last year will need to be maintained.

"There is no capacity for unwinding any of those savings measures."

Shadow treasurer Iain Evans says the loss of GST revenue cannot be portrayed as any sort of surprise as the SA Government frames its budget.

"The Victorian Government have been out there many, many weeks ago saying they were getting a $600 million a year hit to their GST revenues. Well clearly if one state's losing GST revenue, it's likely that another state will," he said.

Health boost

Port Lincoln and Mount Gambier Hospitals will be big winners in the federal budget.

Almost $70 million will be spent on redevelopment work at the two hospitals.

Port Lincoln will get an expanded theatre suite and a new public dental clinic.

Improvements at Mount Gambier will mean new cancer care beds and more palliative care and mental health services.

Federal Minister for Mental Health and Ageing, Mark Butler, says there also will be $13 million for health projects at Wallaroo, in the Riverland, the APY lands and at Naracoorte.

"There's no doubt that this is going to be a tough budget but we made commitments last year to improve regional health care services around the country and we're committed to carrying through with those commitments," he said.

The federal budget will allocate more than $300 million for work on South Australian roads.

It will support work on the South Road Superway and the Dukes Highway.

Federal Infrastructure Minister Anthony Albanese says it will also allow work on 25 of the state's black spots and improvements to roadside rest stops.

"We'll be partnering with local government to do the 25 dangerous black spots and also we'll be providing more than $80 million for South Australian councils directly to maintain and upgrade their local roads, according to their local priorities," he said.